Are “Main Street” Businesses in Local Economies Dead? The Role of Franchised Auto Dealerships
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8 ©2025 New Car Dealers of Utah (NCDU) | The newsLINK Group LLC. All rights reserved. Utah Auto Dealer is published four times per year by The newsLINK Group LLC for NCDU and is the official publication for this association. The information contained in this publication is intended to provide general information for review, consideration and education. The contents do not constitute legal advice and should not be relied on as such. If you need legal advice or assistance, it is strongly recommended that you contact an attorney as to your circumstances. The statements and opinions expressed in this publication are those of the individual authors and do not necessarily represent the views of NCDU, its board of directors or the publisher. Likewise, the appearance of advertisements within this publication does not constitute an endorsement or recommendation of any product or service advertised. Utah Auto Dealer is a collective work, and as such, some articles are submitted by authors who are independent of NCDU. While a first-print policy is encouraged, in cases where this is not possible, every effort has been made to comply with any known reprint guidelines or restrictions. Content may not be reproduced or reprinted without prior written permission. For further information, please contact the publisher at (855) 747-4003. 14 6 CONTENTSPUB. 7 2025 ISSUE 1 6 Driving Change With Grasstops Advocacy 8 Politics, Protests and Posts What Employers Can (and Can’t) Do About Employee Speech in a Polarized Climate By Fisher Phillips 14 Bridging the Gap Successfully Managing a Multi-Generational Workforce 18 Are “Main Street” Businesses in Local Economies Dead? The Role of Franchised Auto Dealerships 20 Workplace Violence and the Risk to Dealerships 22 Driving Utah’s Economy 4 UTAH AUTO DEALER
Anticipate every turn In an industry that’s always evolving, your dealership can rely on our Dealer Financial Services team’s 90 years of experience to see what’s around the corner, forward-thinking insights to prepare you, and technology to keep you ahead of the curve. What would you like the power to do?® Steve Hood, steve.hood@bofa.com Paul J. Cluff, paul.cluff@bofa.com business.bofa.com/dealer ©2024 Bank of America Corporation. All rights reserved. DFS-699-AD 6942528 Investment products offered by Investment Banking Affiliates: Are Not FDIC Insured Are Not Bank Guaranteed May Lose Value “Bank of America” and “BofA Securities” are the marketing names used by the Global Banking and Global Markets divisions of Bank of America Corporation. Lending, derivatives, other commercial banking activities, and trading in certain financial instruments are performed globally by banking affiliates of Bank of America Corporation, including Bank of America, N.A., Member FDIC. Trading in securities and financial instruments, and strategic advisory, and other investment banking activities, are performed globally by investment banking affiliates of Bank of America Corporation (“Investment Banking Affiliates”), including, in the United States, BofA Securities, Inc., which is a registered broker-dealer and Member of SIPC, and, in other jurisdictions, by locally registered entities. BofA Securities, Inc. is a registered futures commission merchant with the CFTC and a member of the NFA.
There’s no getting around the fact that change is difficult. It’s challenging to change someone’s mind or opinion. Imagine the difficulty in getting a group of legislators to change a law or political stance. Auto dealers have the power to advocate for a better industry. The effects can make a huge difference to your teams, local communities, state, or even at times on a national level. In advocacy, especially when it comes to protecting and promoting the interests of auto dealers, two terms often come up: grassroots and grasstops advocacy. They sound similar, but they play very different roles. Grasstops vs. Grassroots Most people have likely heard of grassroots advocacy. This is a method of advocacy that involves recruiting ordinary people to combine their voices. The emphasis here is on the quantity of voices. Maybe you’ve donated to the NADA PAC or signed a petition to fight a bill. These efforts are significant, but sometimes, advocacy needs to go a step further. That’s where grasstops advocacy comes in. Grasstops advocacy involves individuals engaging directly with decision makers. This method relies on the quality of voices to bring about change. Have you ever personally picked up the phone to call a key legislator about an issue affecting our dealerships? Did they answer? That begs the question: How can we do better at engaging at that higher level? Grasstops advocates bring credibility, strategic influence and access — and often help open doors that grassroots advocates can walk through. A grasstops advocacy strategy isn’t just for lobbyists. In fact, as auto dealers, we are uniquely positioned to be grasstop advocates. We are community anchors, employers and, often, well-connected individuals. Grasstops advocacy taps into this influence to help shape policy outcomes from the top down. It’s about using your voice, your relationships and your credibility as an auto dealer to make a direct impact. Why It Matters A multitude of regulatory or legislative issues affect dealers, such as EV mandates, franchise laws and tax policies. In addition, it’s no secret that legislators have packed inboxes and receive many phone calls. Cultivating a relationship with a legislator can help your chances of having your email opened and your voice heard. Picture this: It’s the legislative session. A legislator is receiving a high volume of emails and calls. Everyone wants to talk to them, meet with them, and be heard. The legislator opens his or her email and scrolls through the names. A familiar name stands out. The legislator opens the email from the individual they know — in this case, you — thus marking the winner of the legislator’s attention. Driving Change With Grasstops Advocacy 6 UTAH AUTO DEALER
This is a classic scenario reflecting a simple truth: The attention of someone in power will be caught first by a familiar name. This is why Grasstops advocacy is so effective. You want the lawmakers to know your name and your story, so your voice can be heard and your cause can be advanced. How to Build a Grasstops Strategy Knowing where to start when it comes to a grasstops approach to advocacy can be intimidating. You may feel like you don’t have the time to make a difference, or maybe you’re uncomfortable reaching out to lawmakers and afraid of pushback. The easiest approach is to view the process as actionable steps. 1. Map Your Network: Identify any relationships or connections you have with local, state or federal officials. You may have more connections than you think. 2. Grow Your Network: Put yourself in situations to create relationships with individuals in the industry. Visit lawmakers, make connections and let those connections lead to more. 3. Engage Regularly: It’s important to regularly make contact with your network of legislators. You can achieve this by calling them a few times a month, interacting on social media, hosting events or inviting them to visit your dealership. 4. Tell Your Story: When talking to legislators, you want them to remember you and your story. Personalizing the relationship and showing them why you care about your dealership, the industry, and what is happening on the legislative front can help them understand your point of view and, in turn, help. Conclusion Grasstops advocacy is a powerful tool that more association members need to use. By crafting personal relationships with legislators, we can effectively fight for our industry. Grassroots and grasstops advocacy strategies should be used in tandem to champion our industry effectively. Grassroots efforts provide the quantity through widespread public engagement, while grasstops deliver the quality by leveraging the power of an influential individual to shape decision-maker perspectives. Together, they create a balanced and powerful approach that combines broad support with strategic influence. Remember, it just takes one dealer with the right connection to make all the difference. So, take the first step. Start a conversation, attend a legislative event, or contact the association about getting involved. ON AVERAGE, UT DEALERS ADD $106,344 IN PARTS UPLIFT ANNUALLY ARMATUS HAS COMPLETED OVER 202 SUBMISSIONS NATIONWIDE ON AVERAGE, UT DEALERS ADD $97,104 IN LABOR UPLIFT ANNUALLY ARMATUS WORKS WITH 72% OF UTAH DEALERS OUR COMMITMENT TO OUR CLIENTS: ÙYou Won’t Lift a Finger: Armatus does all the work for you. ÙFully Contingent Fee: You only pay when you are approved. ÙSpeed and Accuracy: No one completes a submission faster. ÙOptimization: Proprietary software guarantees you the best result. (888) 477-2228 | info@dealeruplift.com WWW.DEALERUPLIFT.COM If you have already completed a submission in-house or with another vendor, you may still have significant opportunities to gain more. If we can’t improve your results, you owe us nothing. Between our scientifically proven optimal results, and our speed of processing, we will literally pay our own fee. Reach out today for a no-obligation evaluation of your parts and labor rates. PREFERRED PARTNER OF 7 UTAH AUTO DEALER
Politics, Protests and Posts What Employers Can (and Can’t) Do About Employee Speech in a Polarized Climate BY FISHER PHILLIPS As political tensions surge and employee expression spill into every corner of the modern workplace, employers are finding themselves caught in the crossfire. From off-hours protests to heated workplace debates and viral social media posts, the question for us isn’t just whether speech is free, but whether it’s job-protected. With laws, rights and risks swirling around every conversation, t-shirt, post and “like,” it’s time for a clear-eyed guide. Here’s what your business needs to know about navigating employee speech in various scenarios, both on and off the clock. 8 UTAH AUTO DEALER
Legal Analysis Private-sector employers are not bound by the First Amendment’s free speech protections, which only restrict government action. That said, employers may not be able to discipline off-duty speech with total impunity. Several states — including California, New York and Colorado — have statutes protecting employees from retaliation for lawful off-duty conduct. Minnesota, Connecticut, Louisiana, South Carolina and Wyoming are among the states that specifically protect off-duty political activity. These laws may prevent employers from firing or disciplining employees for expressing their personal views unless those views have a clear, material impact on the business. Even without a directed state law at issue, the federal National Labor Relations Act (NLRA) could also provide your employees with protection. If the social media post relates, even indirectly, to the employee’s terms and conditions of employment, it may qualify as protected “concerted activity.” This is especially true if the post touches on workplace issues shared by coworkers (e.g., wages, scheduling, discrimination). Under recent interpretations, the National Labor Relations Board (NLRB) has cast a wide net over what counts as protected speech, and this protection applies to non-union workplaces as well. Employer Guidance • Check local laws first. Understand whether your state limits employer action on off-duty political or personal speech. These laws may surprise you, as some prevent employers from terminating the employment of someone who posts clearly offensive posts unless you can show the communication caused direct business harm. • Evaluate the workplace impact. Determine whether the post caused operational disruption, reputational damage or significant internal strife. Without the previously stated, discipline may not be legally or strategically justifiable. • Enforce policies neutrally. Whether the post supports or opposes a cause, the focus should be on the impact, not the ideology. Selective enforcement invites discrimination claims. • Document the decision-making. If you discipline, ensure documentation ties the action to the legitimate workplace impact you considered. Avoid using inflammatory or subjective language. • Consult legal counsel. These decisions often exist in legal gray areas, and public scrutiny can escalate quickly. Getting a second opinion can help de-risk the response. Scenario 1: An Off-Duty Rant Goes Viral An employee posts a politically charged rant on their personal social media account over the weekend. It’s not about work, but it causes public backlash. Scenario 2: Political Debate at the Water Cooler Two employees get into a heated political argument in the breakroom. Other workers complain that it’s creating a hostile or toxic environment. Legal Analysis Political debates in the workplace are becoming more common — and more combustible. While the NLRA protects employees who engage in conversations about workplace conditions (regardless of whether the employees are members of a labor union), the law does not give employees free rein to disrupt the workplace. Employers may lawfully 9 UTAH AUTO DEALER
restrict political speech that creates a toxic atmosphere, distracts from productivity or can be appropriately characterized as harassment or bullying. That said, you must tread carefully. If employees are discussing matters that relate to shared working conditions, such as diversity policies, unionization or workplace safety, their speech may be protected. Discipline in that context could trigger an unfair labor practice charge. The challenge is distinguishing between disruptive or discriminatory conduct (which may be regulated) and protected activity (which may not). If the discussions relate to other protected activity (complaining about discrimination or harassment), then fair employment laws might be triggered. Employer Guidance • Set clear boundaries in your code of conduct. Your policies should emphasize respect and civility in all workplace interactions, including political conversations. Make it clear that hostile or demeaning speech won’t be tolerated, regardless of the topic. • Train managers to intervene early and neutrally. You should teach supervisors to spot the line between a healthy discussion and a volatile one. They should not express political views themselves or allow situations to escalate. • Focus on conduct, not content. If you take action, ensure it’s about the behavior — disruption, intimidation, name-calling — and not the opinion expressed. • Be consistent. If you address one type of political conflict but ignore another, you create the risk of a discrimination or retaliation claim. Scenario 3: Workers Plan a Walkout Employees organize a walkout in support of a political movement, similar to the Day Without Immigrants or recent global protest days. Legal Analysis The legality of employee walkouts hinges on the purpose behind the protest. If the protest is purely political and unrelated to workplace issues, such as a walkout opposing foreign policy or supporting a national election candidate, it likely falls outside the protection of the NLRA. In those cases, employers may treat the absence as unexcused and impose discipline under normal attendance policies. However, if the walkout is tied to workplace issues or advocacy for better working conditions, it could be protected as a “concerted activity.” For example, employees walking out to protest workplace discrimination or to express solidarity with a national labor strike may fall under NLRA protection, even if your organization is not unionized. The NLRB under the Biden administration showed a growing willingness to connect national issues to local employment conditions, particularly under a broad reading of employee rights. We do not expect this trend to continue under the Trump Board once it regains a quorum. Employer Guidance • Determine the purpose of the protest. Ask whether this is political advocacy or workplace-related activism. If there’s a link to workplace terms, protection may apply. • Avoid snap discipline. Even if a walkout seems unprotected, consult counsel before issuing discipline. An inaccurate legal assumption can backfire. • Reinforce your attendance and conduct policies. Make sure employees understand how protest-related absences will be treated in advance. Apply policies consistently. • Prepare a contingency plan. If you anticipate workplace disruptions, line up backup coverage, communicate clearly and debrief afterward to reset expectations. 10 UTAH AUTO DEALER
Scenario 4: Dress Code Disputes An employee wears a shirt with a political slogan, and another wears a Black Lives Matter lapel pin. Your dress code prohibits all messaging. Additionally, uneven enforcement of dress codes — allowing purportedly patriotic or humorous slogans but prohibiting political or social messages — can expose employers to legal risk. If messaging restrictions disproportionately impact one group of employees or one viewpoint, a discrimination claim could follow. Scenario 5: Employee Demands “Free Speech” Rights An employee challenges a policy restricting political speech, claiming it violates their First Amendment rights. Legal Analysis One of the most common misunderstandings among employees is believing the First Amendment protects their speech at work. While that may apply in public-sector employment, it has no direct application in the private sector. However, some states provide narrow protections for off-duty political activity, especially when the speech has no connection to the workplace or employer. Still, the law does not give employees carte blanche to say whatever they want in the workplace or on platforms where their employer may be impacted. You retain the right to impose reasonable restrictions on workplace speech to preserve productivity, safety and a respectful environment. It’s a balancing act between creating space for diverse perspectives and maintaining order. Employer Guidance • Educate employees. Consider issuing FAQs or training to clarify that the First Amendment doesn’t apply to private workplaces and explain how your policies balance expression with workplace cohesion. • Enforce policies neutrally. Don’t suppress one viewpoint more harshly than another. Fair and even application is your best legal defense. • Refine your messaging. When enforcing restrictions, emphasize business impact, not ideology. Reiterate that all employees must follow the same rules regardless of beliefs. • Respect protected off-duty conduct. If your employee’s speech occurred off-hours and in a jurisdiction with political activity protections, proceed with caution. Seek counsel before taking action. Employer Guidance • Reassess your policy. If your dress code prohibits all messaging, make sure it’s uniformly enforced and tied to a legitimate reason, such as safety, customer expectations or professionalism. • Apply it evenly. You can’t allow some messages and ban others based on subjective content. If you prohibit “BLM” attire, you should also prohibit “Back the Blue” messaging, for example. • Avoid knee-jerk enforcement. If the messaging relates to labor rights or workplace activism, call your lawyer before issuing discipline or sending someone home. • Communicate the rationale. When enforcing the policy, explain the focus is on maintaining a distraction-free, respectful environment — not silencing ideas. 11 UTAH AUTO DEALER
What Employers Should Do Now The legal landscape surrounding employee speech is more complex than ever. While you have significant discretion to shape workplace norms, that discretion is bounded by state laws, federal protections and public expectations. A one-size-fits-all approach won’t cut it. Here’s what your business can do now to stay out of the crossfire: • Audit your policies on political expression, conduct, social media and dress code. Make sure they’re clear, enforceable and compliant. • Train managers to handle political tensions respectfully and neutrally — and avoid injecting their own views into the workplace. • Monitor enforcement for bias. Whether it’s discipline, messaging or investigations, make sure all actions are consistent across the board. • Prepare for protest-related absences. Have a contingency plan for potential walkouts or disruptions linked to national events. • Get legal support early. When in doubt, loop in your counsel, especially in high-visibility or legally gray situations. Conclusion Make sure you are subscribed to Fisher Phillips’ Insight System to get the most up-to-date information on the issues discussed in this insight. If you have questions about these issues, please contact your Fisher Phillips attorney or any member of our Labor Relations Group. Also, make sure to visit our New Administration Resource Center for Employers to review all our thought leadership and practical resources. This article was originally published on fisherphillips.com. To view it, scan the QR code. https://www.fisherphillips.com/en/news-insights/ politics-protests-and-posts.html Scenario 6: A Manager Makes Political Statements to Staff A supervisor frequently shares their personal political views in team meetings. Some employees feel pressured or uncomfortable. Legal Analysis When a manager shares political views with those who report to them, legal risks multiply significantly. Even if the statements aren’t explicitly coercive, the power dynamic can create the perception of pressure, especially if employment decisions follow. Employees may feel silenced or retaliated against for not agreeing with their manager’s views. From a legal perspective, such speech could open the door to claims of discrimination, retaliation or hostile work environment, especially if the political commentary touches on race, religion, gender identity or national origin. Managers are held to a higher standard because their words are presumed to carry the weight of the company. Employer Guidance • Train your leadership team. Make it clear that managers should avoid discussing personal politics with subordinates and must never appear to favor or disfavor anyone based on political alignment. • Create reporting channels. Ensure employees can safely raise concerns about inappropriate speech by supervisors without fear of retaliation. • Respond swiftly. If a complaint arises, investigate promptly and document the findings. Corrective coaching is often sufficient, but more serious consequences may be needed in egregious cases. • Model the right tone. Culture starts at the top. Your leadership team sets the example for respectful, inclusive communication across the company. 12 UTAH AUTO DEALER
For the first time in history, we have five generations in the workplace, which also means dealerships are juggling the interests, needs and communication styles of members whose ages span over a half-century. Each of these groups has been influenced by the socio-cultural events that took place during the formative years of their lifetimes, including how each generation views its financial needs, goals and communication preferences. A generation is defined as “a group of people born around the same time and raised around the same place. People in this birth cohort exhibit similar characteristics, preferences and values over their lifetimes.” This generational melting pot presents an interesting puzzle for both owners and management teams because a one-size-fits-all approach is no longer an effective way to engage all employees. In order for employees to be fully engaged and participate more and more, the feedback is to communicate with them how they want to be communicated with. Successfully Managing a Multi-Generational Workforce Bridging the Gap 14 UTAH AUTO DEALER
Generations have differences in the values, beliefs and opinions of different groups of people. While some believe strongly in the differences, others believe they are a myth. Those believing in the differences assert they are important to recognize and accommodate, especially in settings with multiple generations in today’s workforce. • Traditionalists value workplaces that are conservative and hierarchical and have a clear chain of command and top-down management. • Baby boomers value workplaces that have flat hierarchies, democratic cultures, humane values, equal opportunities and warm and friendly environments. • Generation X values workplaces that are positive, fun, efficient, fast-paced, flexible, informal and have access to leadership and information. • Millennials value workplaces that are collaborative, achievement-oriented, highly creative, positive, diverse, fun, flexible and continuously providing feedback. • Generation Z values workplaces that offer security, are competitive and offer independence where they can multi-task and communicate face-to-face in an entrepreneurial environment. They are digital natives who want to be catered to. Leaders need to be adaptable and willing to negotiate compromises to effectively serve all generations. While it may not always be possible to find a middle ground, making an effort can create significant positive change. It’s important to work on bridging the generation gap without exacerbating it. Achieving this requires thoughtful conversations conducted in good faith, as well as effective negotiation. Let’s examine where intergenerational conflict may arise and the potential consequences if leaders fail to establish an inclusive path forward. Communication Setting expectations upfront can help avoid any confusion while reaching business goals. • Set clear guidelines and expectations for communication channels and response times. • Offer training on effective communication strategies for leaders, focusing on bridging generational gaps. • Promote collaboration and communication across generations through group projects that develop intergenerational skills. • Provide cheat sheets during onboarding that include team communication preferences. Add personal details (pets, hobbies, etc.) to facilitate quicker interpersonal connections. • Train employees on scheduling emails for later to respect communication preferences, and don’t pressure them to respond outside of regular business hours, even if their colleagues are working during those times. The Work/Life Balance Different generations have unique expectations regarding work hours, flexibility and time off. However, preventing burnout is crucial for all age groups. Research indicates that an imbalance between work and personal life greatly contributes to burnout, leading to higher turnover rates and lower job satisfaction. To enhance a work/life balance across generations 15 UTAH AUTO DEALER
while maintaining high productivity and morale, consider the following strategies: • Provide flexible work arrangements, including options for hybrid, remote or adjustable schedules. • Encourage employees to prioritize self-care and well-being by implementing wellness initiatives. • Establish policies and guidelines that encourage work/life balance and clearly define expectations for all employees. • Offer resources and support for effectively managing stress and achieving a healthy work-life balance. Embracing Technology Different rates of technology adoption can hinder team collaboration and engagement. Training and effective communication are essential to bridge the gap between these varying adoption rates. Consider the following steps to help your employees embrace technology: • Implement training programs to enhance digital skills across all generations, including opportunities for cross-skilling. • Foster a culture of questioning where individuals from any generation feel comfortable raising their hand and saying something like, “I’m having difficulty understanding the new process. I know I’ve asked before, but could someone please help me?” • Develop a technology adoption roadmap that includes ongoing support and clearly outlines training expectations. • Engage employees in the decision-making process and address their concerns about changes in technology. Benefit Offerings Each generation requires different benefits; however, it’s crucial not to make assumptions based solely on someone’s birth year. Instead, employers should ask employees about their specific needs and then offer them a range of options. This can make a huge difference in employee retention. Additionally, providing a wide variety of choices and benefits can distinguish employers in the competitive job market, helping them resonate with and attract talent from all generations. Failing to provide complete information about benefits or not communicating them clearly can hinder your ability to attract new talent. Job postings that explicitly mention various benefits, such as workplace wellness programs and flexible work arrangements, tend to receive significantly higher engagement rates from job seekers compared to postings that do not include these details. To enhance benefit participation, consider the following: • Regularly assess and revise benefit offerings to reflect changing demographics and incorporate employee feedback. • Clearly communicate the value and purpose of each benefit to ensure transparency and understanding. • Consider cafeteria-style benefit plans where employees can select the benefits that suit them best. • Ask the right questions to avoid overpaying for unnecessary benefits. For example, while some employees may express a desire for fully remote work, you might find that, upon further inquiry, they are actually comfortable coming into the office two days a week. Conclusion To maintain an up-to-date understanding of your workforce, establish feedback channels throughout the employee experience. Consider conducting stay interviews to gain insight into why employees choose to remain with the company and why others leave rather than waiting for exit interviews after someone has departed. By approaching it this way, you can gather valuable insights that may influence your workplace strategy, lead to changes in policies and benefits, and help shape your plans for attracting and retaining talent. Remember, work cultures are dynamic and must evolve alongside your workforce. The suggestions in this article are not one-time fixes; instead, they offer ways to collaborate with your employees to find timely solutions tailored to your team’s needs. As you adapt and are transparent about your actions, the strategies you implement can go a long way in helping your business’s growth and success. After all, happy employees lead to happy customers. And isn’t that what selling cars is all about? 16 UTAH AUTO DEALER
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The U.S. Chamber of Commerce reports that small businesses account for 99.9% of all U.S. businesses and employ 46% of the private sector workforce. According to the SBA’s “small business” definition, the majority of local franchised auto dealerships are part of the 33.2 million small businesses that form the foundation of our nation’s economy. Are “Main Street” Businesses in Local Economies Dead? The Role of Franchised Auto Dealerships 18 UTAH AUTO DEALER
At the heart of many communities are “main street” businesses. They are often locally owned brick-and-mortar stores that offer essential goods and services. These “main street” businesses serve as a hub for social interaction while fostering a sense of place and hometown pride. Franchised auto dealerships are the last true “main street” businesses. With deep community ties, many of these businesses are family-owned and have been passed down from generation to generation. When it comes to local franchised auto dealerships, an estimated 85% of the 16,000+ are family-owned and some even have a fourth generation getting ready to take over the reins. These dealerships are known for their accessibility, a place where customers can often interact personally with the owner, thus fostering strong community relationships. Additionally, dealers are inherently ingrained and deeply invested in their communities, giving back as much, if not more, than they bring in. Across the board, dealers directly invest in their neighborhoods through car donations, Little League sponsorships, volunteer hours and so much more. And this is just the start of what dealerships bring to the local table. Employees of dealerships are often involved in chambers of commerce and other local business associations, playing a direct role in keeping the local business community vibrant and healthy. This level of community commitment is not easily replicated. It’s not hard to see how franchised dealerships have become an integral piece of the local economy and we haven’t even mentioned economic activity. According to NADA, in 2024, Utah dealerships employed 26,840 people — that’s 79 employees per dealership on average, with a whopping $853 million in payroll. What’s more, those employed in the automotive industry don’t have just another low-paying job. Whether it be in retail or as a service technician, the automotive industry offers one of the few work opportunities where those who don’t see a four-year college degree as an option can find a path to the middle class and higher. All that is needed is a healthy dose of work ethic, a willingness to learn and on-the-job experience. The benefits of these jobs to the community are immediate because employees and customers are the community. The profits feed right back into the local area. Really, the only people the franchise model isn’t good for are Wall Street billionaires. Yet another staggering number is the $9.7 billion in total sales that Utah’s franchised auto dealers made in 2024. That equates to $264 million in state and federal income taxes and $655 million in state sales tax. Those are impressive numbers, and though there are certainly outliers, most franchised dealerships fit into the “main street” business mold. They are not what one would classify as a mom-and-pop shop, nor are they considered a billionaire class. Simply put, they are affluent “main street” community businesses. While not immune to consolidation by larger corporations, for the most part, dealerships remain a fundamentally local small business that lives and dies by their community, selling person to person to their neighbors. The recent efforts of new tech manufacturers to disrupt the franchised dealership system — which has thrived for over 100 years — have not succeeded. What leaders from new tech companies fail to realize is how expensive it is to get a storefront, customize and brand it, fill it with inventory, hire staff and train them on the intricacies of the car make and model so the customer relationship can be built, nurtured and live well beyond the initial purchase of the vehicle. This carefully developed relationship happens over time and includes regular oil changes, service and repair, warranty work, and, if all goes to plan, selling the customer their next new car when the time is right. Over the last decade, we’ve heard a lot of talking points about the usefulness of physical dealership stores. The talking heads spoke from one extreme to another, especially with Tesla and their internet model of selling cars. In statehouses across the nation, bills were filed, hearings were held, and legislation was passed in an effort to protect the franchised system. As the dust settles, the evidence is clear: The integration of a physical store with an online shopping option is the optimal retail model. Not because we said so, it’s because car buyers prefer a combination of physical and digital channels, and their money does the talking. The “bricks and clicks” model of selling cars is here to stay. While younger generations may prefer a digitally enhanced car buying experience, they still value physical touchpoints, choosing to gather information and make decisions based on a combination of online and physical channels. At the same time, older generations prefer an in-store car-buying experience but are increasingly engaging in online shopping options. The benefits of the franchised dealer model are the wide distribution network, personalized customer service, the ability to manage inventory and financing while providing a physical space for test drives and the final purchase experience. It also supports the car sales process and provides a deeply human interaction, one that can be facilitated, but not replaced, by technology, making the franchised auto dealership the epitome of “main street.” 19 UTAH AUTO DEALER
Workplace Violence and the Risk to Dealerships The effects of workplace violence are profound, including physical and emotional suffering, destroyed careers and harm to companies and communities. And it comes at a staggering economic price. Although estimates differ, researchers have put the cost of workplace violence at as much as $56 billion annually — and that figure is likely significantly low. No industry is free of violence, but the problem is particularly prevalent in the retail sector. With incidents ranging from verbal abuse to physical assaults, it can have a serious impact on employees, customers and the retailer’s reputation. A poll conducted by Liberty Mutual showed that, on average, for every $1 invested in improving workplace safety, approximately $3 or more is saved. Yet, according to the OSHA, only 30% of businesses currently have formal safety and health programs in place. Given the considerable number of individuals in today’s workforce, this percentage is concerning and highlights the need for improvement. Employers who prioritize safety not only protect their employees but also foster a more productive and engaged workforce. Organizations should take violence prevention and overall safety seriously. Initiative-taking measures are essential to ensuring both the well-being of employees and the long-term success of the company. In a workplace environment such as a dealership, employees regularly interact with individuals who have diverse personalities and working 20 UTAH AUTO DEALER
styles. Under the pressure of meeting goals and deadlines, conflicts can naturally arise. If employees lack the skills to manage these conflicts effectively, situations can escalate into workplace violence. Additionally, employees in retail operations often encounter abusive customers, which may range from verbally abusive to, in rare cases, physical harm. While active shooter incidents in workplaces are statistically rare, they are a serious and sadly growing threat. Being prepared is crucial. Potential Risks and Costs to Employees When workplace violence occurs, it can bring an organization’s operations to an immediate halt. Employees are often left in shock by the disruption and chaos, unsure whether to intervene or prioritize their own safety. If the violence results in injury, medical insurance claims are likely to follow, and in more severe cases, legal action may be pursued. According to the National Safety Council, the average cost for one small business to mitigate one incident of workplace violence can escalate as high as $1.3 million and does not address any impact on work productivity. Steps That Dealerships Can Take to Control Workplace Violence Managers and owners must recognize the critical importance of ensuring a safe and secure workplace. Every employee has the right to feel protected and confident in their work environment. Consider this: Every year in America, more than two million workers become victims of workplace violence, and according to a survey from the Society of Human Resource Management (SHRM), one in seven workers feel unsafe at work. The steps to forming a workplace safety program include: 1. Performing Background Checks: It is essential to ensure that those who represent your company are a good fit and uphold the organization’s values. Implementing a comprehensive screening process is a proactive measure that can play a critical role in maintaining a safe and secure environment for all employees. 2. Having Clear Violence Prevention Policies in Place: Establish clear policies and procedures specifically designed to address and prevent violent behavior. Well-defined rules create structure and accountability within an organization. Most companies adopt a zero-tolerance approach to violence, making it clear that any form of physical altercation or inappropriate conduct will result in immediate termination and may lead to further legal action. It is essential that all employees are fully informed of these policies and understand the consequences of violating them. 3. Providing Training: Provide regular training for all employees. It is crucial that staff are equipped with the knowledge to recognize and respond to potential threats. Employees should be trained to identify early warning signs of escalating behavior, including verbal aggression, noticeable changes in body language, social withdrawal and signs of agitation. In addition, organizations should have a clearly defined emergency response plan in place, outlining procedures for where to go and what actions to take if violence occurs. Supervisors and managers should receive specialized training on conflict resolution and de-escalation techniques to help defuse potentially violent situations before they escalate. 4. Offering Employee Assistant Programs (EAPs): Acts of workplace violence often stem from underlying personal or professional stressors that build up over time. By providing support services such as counseling, therapy and stress management resources, organizations can help employees address their concerns in a healthy and constructive manner. Offering access to EAPs demonstrates a company’s commitment to employee well-being and can be a cost-effective strategy for reducing the risk of workplace violence. 5. Creating a Positive Work Culture: Foster a welcoming environment that promotes respect, inclusivity and open communication. Establishing an open-door policy encourages employees to voice their concerns and report issues without fear of retaliation. Additionally, employees should feel confident that any reports or concerns they bring forward will be managed confidentially and addressed appropriately. The well-known phrase, “If you see something, say something,” should be actively promoted within the organization to create a culture of vigilance and shared responsibility for workplace safety. 6. Ensuring Employee Recognition: Implement recognition and reward programs that encourage employees to actively contribute to a safe work environment. Acknowledging and praising employees for consistently upholding safety standards, following policies and procedures and promoting a culture of respect reinforces positive behaviors. Recognitions can be as simple as verbal appreciation or more formal, such as the “Safety Employee of the Month” award for outstanding commitment to workplace safety. Incentive programs not only boost morale but also foster a shared sense of responsibility among staff to maintain a secure and supportive environment. Sadly, with so much at stake, too many companies are not ready — but preparedness can make all the difference. While threats may be unavoidable, preparedness offers a much more positive outlook. Not only can it help protect employees and company assets from harm, but statistics show that the cost of prevention is 100 times less than the cost of managing the aftermath of a tragedy. 21 UTAH AUTO DEALER
Source: Center for Automotive Research, NADA, NADA Industry Analysis, S&P Global, Taxfoundation.org, U.S. Bureau of Labor Statistics, U.S. Census Bureau. $853M $9.7B 0.8% Includes income taxes paid for direct, indirect and induced jobs. PAYROLL TOTAL SALES (all dealerships) REGISTRATIONS STATE SALES TAX PAID NATIONAL AUTOMOBILE DEALERS ASSOCIATION NADA Industry Analysis | 8484 Westpark Drive, Suite 500, Tysons, VA 22102 | 800.557.6232 | economics@nada.org NADA Legislative Affairs | 412 First St. SE | Washington, DC 20003 | 800.563.5500 | legislative@nada.org 143 DEALERSHIPS (new car) 26,840 TOTAL JOBS (created by dealerships) Includes 11,238 direct jobs and 15,602 indirect and induced jobs. 79 EMPLOYEES (average per dealership) Driving Utah’s Economy Annual Contribution of Utah’s New-Car Dealers Numbers reflect annual economic activity during 2024. $75,907 Average Annual Earnings $264M State and Federal Income Taxes Paid Utah’s Share of Total U.S. New-Vehicle Registrations $655M 22 UTAH AUTO DEALER
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